Determinants of new firm success

The differences between new firms, even the differences present right at th e start, may affect their lift: course and success over time. This article addresses the determinants of success of Dutch start-ups from a longitudina l perspective. After an overview of the literature on both the definition o f success and the success factors of new firms we test how new firm charact eristics relate to firm growth in number of employees using a panel of near ly 2,000 firms. In addition to a large firm size right from the start, good preparation, having a business partner, and some years in salaried employm ent also enhance firm growth. Based on these success determinants we constr uct a typology of starters that may be used to predict future growth chance s. JEL classification: D21, M13, R30.